News

Republicans Dislike Tax Ideas

Republicans in the General Assembly who oppose a progressive income tax say they oppose it even if the corporate income tax were abolished.

They frame their opposition to a progressive income tax – one that charges higher rates on higher levels of income – as such a tax being bad for business. But take away the corporate income tax altogether, and it’s still bad, says State Sen. Matt Murphy (R-Palatine).

“It’s an interesting concept, because we do have one of the highest corporate taxes in the world right now. The concern that I would have with that is the large number of small businesses that are operated by people who pay the individual rate,” he said.

The corporate income tax rate is 7 percent, though businesses pay another income-based tax that adds up to 9.5.

A progressive income tax is being discussed in Springfield. It would require a constitutional amendment.